Are you thinking about purchasing a new home? Despite the current economic troubles being faced around the world, there is no doubt that there has never been a better time than now to purchase a new home. In fact, we are currently in the midst of what is referred to as a “buyer’s market.” In other words, if you have the financial means, you can truly cash in on some amazing deals if you purchase a home this year.
Taking Advantage of Low Prices
Although every market is different and some housing markets are suffering more than others, the reality is that prices are down in every market around the country. In some cases, you can literally save tens of thousands of dollars on properties when compared to the prices they were going for just a year ago. For this reason, many investors are purchasing homes at these rock-bottom prices in anticipation of the economic upswing that is sure to occur. While you may not be primarily looking for an investment property, it is certainly comforting to know that you can now purchase a home at a great price and can be almost certain its value will increase significantly over the next several years.
Enjoying First Time Home Buyer Credit
In addition to saving thousands of dollars on the price of your home, the Stimulus Package that was passed on February 17 also contained a tax credit provision for first time home buyers. Unlike the tax credit that had been enacted in 2008, this credit does not have to repaid and you can receive up to $8,000 in credit from the purchase. The exact amount of credit you receive will vary according to the cost of the home, as the credit is determined by calculating 10% of the home’s purchase price.
In order to be eligible for the new First Time Home Buyer Credit, you have to be purchasing your first home and you must meet certain income requirements. For single individuals, you have to have an income of $75,000 or less to qualify. Married couples, on the other hand, must have an income of $150,000 or less in order to qualify for the credit.
Although now may not be the time to buy if you are experiencing financial difficulties or if you are planning to move in the very near future, those who are financially prepared for home ownership and who are ready to settle down should certainly take advantage of today’s market and tax incentives.
About the Author:
Eric Bramlett is the broker & co-owner of One Source Realty, a boutique Austin real estate firm. Eric earned his real estate license in 2003, and broker’s licens in 2005. He has been a full time real estate professional since 2003.